Convenience store chain 7-Eleven should have acted on information some of its franchisees were making deliberate attempts to underpay workers sooner, the Fair Work Ombudsman says.
An inquiry launched in June 2014 has found the payroll section of the company's store review process had a reasonable basis to inquire and act on claims operators were inputting false information into the system.
"What is clear is that since our auditing in 2009, 7-Eleven had information that some stores within its network had engaged in deliberate attempts to underpay workers," Ombudsman Natalie James said upon the release of findings on Saturday.
"Recent changes to the 7-Eleven model and planned changes to the payroll system are welcome, however it is the view of the inquiry that 7-Eleven could have acted earlier and done more."
The inquiry was told most of the chain's employees were males from non-English speaking backgrounds on international student visas.
Ms James said she was "sick and tired" of seeing visa holders being paid between $10 and $12 an hour.
"We have minimum pay rates in Australia, they apply to everyone, and they are not negotiable," she said.
The Ombudsman has recommended 7-Eleven enter a compliance partnership "accepting that it has a moral and ethical responsibility to ensure its stores meet community and social expectations."
The chain should also review its operating model, set up a staff consultative forum and implement effective governance arrangements that ensure compliance, she said.
The company has welcomed the report and said it would work to make changes in line with the recommendations.
Chief executive Angus McKay said the company would soon roll out biometric and compulsory centralised payroll systems in hopes of eradicating false record problems.
"7-Eleven is leaving no stone unturned in the pursuit of lasting solutions," he said.
Chairman Michael Smith said he and Mr McKay were continuing negotiations with the Ombudsman to conclude the finer details of a compliance partnership taking into account the principles in the report.
Since 2009, the Ombudsman has placed eight matters before the courts and recovered $625,000 for underpaid employees.
Ms James said the inquiry, which looked at 20 stores in NSW, Queensland and Victoria, experienced a widespread lack of co-operation.
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